WIESBADEN (dpa-AFX) - German carbon and graphite product manufacturer SGL Carbon (SGLFF.PK), at its Annual General Meeting on Friday, said it continues to expect fiscal 2019 Group EBIT before non-recurring charges same as last year, and sales revenues to increase in the mid-single-digit percent range, primarily driven by volume.
The company expects its consolidated net result for the year to break even, compared to net profit of about 41 million euros in fiscal year 2018.
For the remainder of the year, the company said it is confident to again perform well despite the slowing economic growth across the globe.
In the year 2018, Group EBIT before non-recurring charges was at about 65 million euros, 61 percent higher than the last year, driven primarily by the positive performance of GMS business unit.
Regarding its medium-term objectives up to the year 2022, the company said it expects an increase in its original sales revenue target to nearly 1.4 billion euros from 1.3 billion euros.
The company anticipates additional EBIT in the low-double-digit million euro range for the year 2022. EBIT margin target would remain at at least 10 percent.
Talking about dividend, Jürgen Köhler, CEO of SGL Carbon, said, 'Despite these overall very positive developments, the company unfortunately does not yet have the capacity to distribute dividends. With continued growth, our company will also be able to operate in a considerably more profitable manner. Once that happens, the payment of earnings-related dividends will be possible.'
Further, SGL noted that starting in 2020, it will be supplying battery enclosures to a European automobile manufacturer, and are already in talks with other potential customers.
In Germany, SGL Carbon shares were trading at 7.54 euros, up 3.71 percent.
Copyright RTT News/dpa-AFX